Top Tax Preparation Software for Households

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Top Tax Preparation Software for Households

While there is no publicly available information to fully answer your question, we have used the available data to pull together key findings. The number of households or individuals that filed taxes using the top ten tax preparations services in 2017 could not be triangulated due to the limited information available on the subject provided by online sources that are not behind a paywall. Tax preparations companies do not provide data that segments the tax returns processed based on consumer types such as individuals and businesses and are also not required by law to disclose them. Below you will find an outline of our research methodology to better understand why the information you have requested is publicly unavailable, as well as a deep dive into our findings.

RESEARCH STRATEGY 1

  • An examination of the respective companies’ websites, including the 'About Us' and 'Press Releases' sections did not provide the number of households/individuals that filed taxes in 2017 using their solutions and triangulations could not be conducted due to insufficient information available.
  • Out of the ten companies, only TurboTax has revealed some statistics related to its platform usage.
  • However, the information was not segmented into usages by individuals or businesses.
  • Every information provided merely centered on the various product versions and capabilities, and how it differentiates itself from its competitors.

RESEARCH STRATEGY 2

  • An examination of the respective companies’ filings and reports such as 10Q statements, 10-K statements, annual reports, and 8-K filings did not provide the number of households/individuals that filed taxes in 2017 using their solutions and triangulations could not be conducted due to insufficient information available.
  • Out of the ten companies, only Liberty Tax, H&R Block, and TurboTax had disclosed statistics related to their platform usage.
  • However, the information was also not segmented into usages by individuals or businesses.
  • The remaining companies are private companies and do not publish official filings and reports.

RESEARCH STRATEGY 3

  • An examination of articles published by media outlets such as Forbes, WSJ, Washington Post, Business Insider, and Bloomberg, US-based tax blogs such as 'TaxAct Blog', '1040.com', and 'US Tax FS,' and third-party comparison sites such as CNet, Carterra, SmartAsset, Consumer Affairs.com, BestCompany did not provide the number of households/individuals that filed taxes in 2017 using their solutions and triangulations could not be conducted due to insufficient information available.
  • Articles published by media outlets and tax blogs did not provide any relevant statistics.
  • Some of the third party comparison sites have provided information related to platform usage and its popularity for Credit Karma and FreeTaxUSA.
  • However, the information was also not segmented into usages by individuals or businesses.
  • For the remaining companies, only information on price and features are published on third-party comparison sites.

RESEARCH STRATEGY 4

  • Efile, FreeTaxUSA, and TurboTax operate as subsidiaries of TaxWork LLC, TaxHawk, and Intuit respectively.
  • An examination of the websites, filings, and press releases of their parent companies did not provide the number of households/individuals that filed taxes in 2017 using the solutions offered by them and triangulations could not be conducted due to insufficient information available.
  • The majority of the information provided catered around the product description and capabilities of each of the platforms.
  • While some filings revealed the number of users, the figures are not segmented in individuals and businesses.

RESEARCH STRATEGY 5

  • An examination of free previews of research reports published by consulting/audit/broker firms such as Deloitte, McKinsey, RBS, JP Morgan, GS, Zacks, NASDAQ, S&P, and others did not provide the number of households/individuals that filed taxes in 2017 using the solutions offered by them and triangulations could not be conducted due to insufficient information available.
  • None of the reports examined provided any information on private companies.
  • Some of the reports featured information such as product usage and trends for public companies, which is one of the key metrics that drive the revenues and valuations of any company, and also major developments/activities apropos of the public companies they track.
  • However, the available information for H&R Block and Liberty Tax is behind a paywall.

RESEARCH STRATEGY 6

  • An attempt to triangulate the data based on the market share and available information for the respective companies was unsuccessful due to insufficient information available.
  • The main reason is that every information obtained from the five strategies mentioned above were not differentiated between individuals and businesses segments.

1) TURBOTAX

  • The company had 36.013 million users utilizing its software to file their returns from May 2017 to April 2018.
  • This included 5.03 million users of TurboTax Desktop, 29.814 million users of TurboTax Online, and 1.17 million users of TurboTax Free File Alliance.
  • The usage grew by 4% year-on-year.

2) H&R BLOCK

  • 23.3 million returns worldwide were filed using H&R Block in FY 2018 (May 2017 to April 2018).
  • This figure represented an increase in 1.5% from 23.0 million returns filed in FY 2017.
  • In the US, 20.0 million tax returns were filed using H&R Block during FY 2018, an increase in 2.5% from 19.5 million in 2017.

3) TAXACT

  • TaxAct provides affordable online do-it-yourself tax preparation solutions for consumers and small business owners, and also preparation software for tax professionals.
  • For the year ended December 2017, 4.5 million consumers used the software to file their returns themselves.
  • 1.8 million returns were e-filed through the 21,000 tax professionals during the same period.

4) CREDIT KARMA

  • The company initially provided free tax filing services to its consumers since 2017.
  • It has not disclosed any official numbers around the tax filing services users.
  • Credit Karma Tax is an extension of the credit score website that is being used by 85 million people.

5) TAXSLAYER

  • TaxSlayer was rated as the 'highest' overall among online tax services software in 2017/2018 for maximum refund, ease of use, best customer service, and overall experience in online taxes versus its competitors.
  • The software was used to file 10 million state and federal tax returns in 2017, representing a 200% increase over the past three years.

6) LIBERTY TAX

  • 1.989 million returns were filed using Liberty Tax in FY 2018 (April 2017 to March 2018).
  • They included 125,000 returns filed online, 1.487 million returns filed through the US offices, and 377,000 returns filed through the Canadian offices.

7) FREETAXUSA

  • Over 18 million tax returns have been filed using the website/software.
  • It has received over 84,000 positive reviews from customers.

8) EFILE.COM

  • It is an authorized IRS e-filing provider. (Source#6)
  • There are no statistics available at all either on the company website or in public apropos of the number of returns processed by the platform. (Source#7)
  • The last deliverable highlighted the overall IRS efiling statistics and not for Efile.com alone.

9) JACKSON HEWITT

  • The company provides services in the field of 'Tax Filing,' 'Tax Help,' and 'Tax Debt.'
  • There are no statistics available at all either on the company website or in public apropos of the number of returns processed by the platform.
  • It simply stated on its website that it had helped "millions of hardworking people" with their tax matters.

10) ESMART TAX

  • The company offers various tax preparation plans such as Free, Basic, Deluxe, and Premium.
  • There are no statistics available at all either on the company website or in public apropos of the number of returns processed by the platform.
  • It has simply highlighted the accuracy and potency of its services to various consumers on its website.

Sources
Sources